Insurance advice

People readily insure assets such as their house and car in case of a loss, but they often overlook the need to insure their most valuable asset – themselves.

It’s something that many of us don’t wish to think about – but what would happen if your income stopped suddenly because you were no longer able to work?

Could you, or your partner, continue to meet your mortgage repayments? How would you cover ongoing bills or your children’s school fees?

Consider these facts

• 85% of Australians have car insurance; however, alarmingly only 31% of us have income protection¹.
• 60% of Australians with children don’t have enough life insurance cover to allow their partner to support their children for more than a year if they were to die².

If you don’t have a plan that can cover your costs if your health fails, it’s worth preparing one.

What is personal insurance?

There are four types of personal insurance cover to consider:

• Life insurance (or death cover) - Pays a lump sum to your beneficiaries in the event of your death  - important to consider if you have dependants
• Total and permanent disablement cover - Pays a lump sum if you’re no longer able to work due to total and permanent disablement - important to consider if you have any large ongoing debts, such as a mortgage, and family to support
• Trauma insurance - Pays a lump sum if you’re afflicted with a specific illness such as heart attack, stroke or cancer - provides peace of mind for you and your dependants
• Income protection insurance - Provides a monthly income when you’re unable to work because of injury or illness - important to consider if you’re the main financial provider in your household.
  
  

How much cover is enough?

The amount of cover you need really depends on your circumstances and how much risk you’re prepared to live with. 

Typically, the average level of life insurance cover recommended is at least ten times an individual’s salary. For someone with an average salary of $55,000, the recommended level of life cover would be at least $550,000^3.

Worried about whether you have enough cover?

We can help with an assessment of your personal needs that’s free of charge and obligation.

Get a free consultation - over the phone or in person

Mercer Wealth Solutions is offering a free consultation with our specialist insurance advisers to help you find the cover you need to give you peace of mind.

Our advisers will review your current level of insurance cover (if any) and provide an insurance consultation at no cost. This consultation takes approximately 30 minutes and can be completed either in person or over the phone.

As an additional service, they can also help you find a better rate or offer for any existing insurance cover you have.

To take advantage of this offer, simply request an appointment below and an adviser will be in touch shortly. Alternatively, call 1800 633 403.

1. TNS/IFSA, Investigating income protection insurance in Australia, July 2006.
2. IFSA media release, Life and risk sales up – Aussies hear wealth protection message, 26 April 2007.
3. IFSA media release, Life and risk sales up – Aussies hear wealth protection message, 26 April 2007.